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Q2) A firm has a WACC of 12.27% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.77. The
Q2) A firm has a WACC of 12.27% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.77. The additional cash flows for project A are: year 1 = $18.64, year 2 = $37.77, year 3 = $68.30. Project B has an initial investment of $70.78. The cash flows for project B are: year 1 = $59.42, year 2 = $49.17, year 3 = $27.73. Calculate the Following: |
a) Payback Period for Project A: (2 points) |
b) Payback Period for Project B: (2 points) |
c) NPV for Project A: (2 points) |
d) NPV for Project B: (2 points) |
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